Whales and ADA are intricately bound — The Cardano network (ADA) is drawing an increasing number of investors, thanks to the launch of decentralized exchanges (DEX) and decentralized financing (DeFi). While regular purchasers are present, it is the whales (the wealthiest investors) that are the most enthusiastic buyers of ADA tokens at the moment.
ADA MILLIONAIRES COLLECT 12 BILLION TOKENS FROM PROJECT CARDANO
The Cardano network witnessed on its blockchain an unprecedented increase of investors buying huge amounts of cardano coins, even to the point of surpassing Ethereum exchanges (ETH). This happens in a few weeks following the debut of its first decentralized crypto-exchanges, SundaeSwap (SUNDAE).
According to on-chain analysis data from the company IntoTheBlock, which was cited specifically by Coindesk, the biggest investors would have recognized the potential behind the launch of DeFi on Cardano.
While the price of ADA has steadily declined from it’s all-time high (ATH) of roughly 3 dollars in early September 2021, whales have been routinely gorging themselves on it. The total number of tokens held by addresses with 1 to 10 million ADA (or 840,000 to 8.4 million USD) has risen to 12 billion ADA – little over 10 billion dollars.
OVER 41% OF ADA COIN IN WHALE POCKETS
While this amount remained stable at 8 billion ADA in September 2021, the news of the DEX SundaeSwap’s opening in January 2022 undoubtedly resulted in a first major impulse of purchases in January 2022, with a buildup of ADA that persisted throughout February.
According to Lucas Outumuro, head of research at IntoTheBlock, wealthy investors are confident in Cardano’s future:
“Cardano appears to be showing signs of good promise ahead, after years of not launching smart contracts. This seems to result in a buildup of ADA from big [financial] players. (…) Cardano is starting to show some attractiveness in its application layer. (…) DEXs on Cardano have raised capital from reputable crypto funds such as Three Arrows Capital. »
Despite the fact that whales are the most greedy, smaller investors appear to be flocking to Cardano in large numbers. Charles Hoskinson’s blockchain network just set another use milestone, with over 4 million addresses holding at least a few ADAs.